A significant disparity in income levels between the wealthiest and poorest neighborhoods in the country is evident, as revealed by recent data from the Office for National Statistics. In Tower Hamlets, households in the affluent Leamouth area enjoyed an average disposable income of £107,600 per year, while in the less prosperous Sparkhill North neighborhood in Birmingham, the average disposable income was just under £20,800 annually.
This disparity in income is further exemplified within local authorities. In Tower Hamlets, Shadwell North had the lowest average disposable income at £33,800 per year, a substantial difference of £73,800 compared to Leamouth. Similarly, in Poplar Central, adjacent to Leamouth, the average household disposable income was £35,000 per year, significantly lower by £73,000.
In Southwark, the income gap was highlighted between Butler’s Wharf and Queen’s Walk, with an average household disposable income of £100,900, and South Bermondsey East, with an average of £37,600 a year. The disparities were also notable in Oxford, Salford, and Birmingham, with income gaps of over £53,200, £44,400, and £42,600, respectively.
The data underscores the widening income gaps in the country, with the ONS reporting a 73% increase in the income divide between the richest and poorest neighborhoods over the past three years. The statistics are derived by assessing the combined disposable income of households after tax payments, with averages calculated for specific areas known as Middle Layer Super Output Areas.
London stands out with almost half of its neighborhoods ranking in the top 10% nationally for average disposable household income, while other regions like the North East, Wales, and Yorkshire and the Humber have fewer neighborhoods in the top percentile. Conversely, a significant portion of neighborhoods in the North West and West Midlands fall within the bottom 10% nationally for income levels.